9th Jul 2018 08:53
LONDON (Alliance News) - Stocks in London opened higher on Monday shrugging off trade war related concerns, while the pound was up against the dollar following the departure of UK Brexit Secretary David Davis. The FTSE 100 index was up 0.5%, or 38.02 points, at 7,655.72 early Monday. The mid-cap FTSE 250 index was up up 0.7%, 135.23 at 20,753.57. The AIM All-Share index was up 0.3% at 1,086.98.The Cboe UK 100 was up 0.4% at 7,647.71, the Cboe UK 250 was up 0.5% at 18,915.86, and the Cboe UK Small Companies was flat at 12,594.15.On the London Stock Exchange, Just Eat was among the best blue chip performers up 2.6% after RBC Capital promoted the online takeaway platform to its Top Pick from Outperform. BHP Billion was up 2.4% after Reuters reported on Friday that oil major BP is in the lead to acquire the US onshore shale oil and gas assets of miner BHP Billiton after submitting an offer worth well in excess of USD10 billion. BP was down 0.5%.At the other end of the large cap index, Hargreaves Lansdown was down 0.4% after JPMorgan downgraded the fund supermarket to Underweight from Neutral. In the FTSE 250, TalkTalk Telecom Group was up 5.5% after JPMorgan raised the home phone and broadband provider to Neutral from Underweight. At the end of the midcap index, Centamin was down 1.8% after the gold miner second quarter gold production from its Sukari mine in Egypt dropped 25% as underground grades fell below forecast.For the three months to June 30, the miner produced 92,803 ounces of gold compared to 124,641 in the comparative year ago period. In the six months to June 30, production fell 7% to 217,099 ounces form 233,828 ounces year-on-year. In May, the company revised its annual production guidance of between 505,000 and 515,000 ounces at a cash cost of production of USD625 to USD640 per ounce produced and an all-in sustaining cost of USD875 to USD890 per ounce sold.In UK political news, Theresa May faces a leadership crisis after David Davis savaged the government's approach to Brexit while dramatically quitting as the minister responsible for the UK's departure from the European Union.His resignation was warmly welcomed by hardline Eurosceptics in the Tory ranks who were already expressing reservations about May's leadership after her Cabinet agreed a plan which would keep the UK closely tied to Brussels.The prime minister now faces a stormy meeting with Tory MPs and peers in Parliament on Monday evening as she tries to keep her fragile administration together.The pound was higher quoted at USD1.3320 early Monday compared to USD1.3261 late Friday."Today and the next few days will be key for Theresa May's survival and the buoyancy of the pound. The pound has fallen away from its opening high versus the US dollar, but not actually swung lower on the day, suggesting that investors believe she will keep hold of the reins," said London Capital Group's Jasper Lawler. In mainland Europe, the CAC 40 in Paris was up 0.5% while the DAX 30 in Frankfurt was up 0.3% early Monday.The euro was firm quoted at USD1.1757 early Monday, versus USD1.1739 at the European equities close Friday.Ahead, European Central Bank President Mario Draghi will speak at the European Parliament's Committee on Economic and Monetary Affairs at 1400 BST. In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.4%, S&P 500 up 0.9% Nasdaq Composite ending 1.3% higher.On Friday, China slapped retaliatory tariffs on US goods after Washington imposed duties on Chinese imports, the first shots fired in a trade war between the two giants that could disrupt the global economy.The US tariffs, which took effect right after midnight Friday on the East Coast, constitute "bullying" and the beginning of the "biggest trade war in history," the Chinese Commerce Ministry said.Beijing then placed 25% tariffs on USD34 billion worth of US goods - the same value as the Chinese imports affected by Washington's tariffs.The Japanese Nikkei 225 index closed up 1.2%. In China, the Shanghai Composite closed up 2.5%, while the Hang Seng index in Hong Kong is up 1.4%.Related Shares:
BPBHP Billiton PLCCentamin PLCJust EatHargreaves LansdownTALK.L